Low Basis has Farmers Sitting on Harvest Crop

Farmer Brock Hansen is already three weeks into harvest on his farm in Jasper County and about 40%+ done.
He says the crop is looking pretty good, "Last year was probably one of the best crops we've had in a while. I think this year, the bean yield, everyone's saying are very good. The corn yields are a little more sporadic. I think we may surpass the bean yields in the USDA numbers. The corn it might be a little tough to reach that number."
Hansen says this year he planted early hybrids to get early contracts to stay ahead of the rush. With a good crop likely, this year he thinks there's a good chance for long lines at the elevators, helped by a lack of farmer selling last year.
But farmers like him, are holding on to their crop again this year. Hansen has increased on farm storage like most U.S. farmers.
That's partly because of a low basis, or the difference between the futures markets and what the local elevators will pay farmers, can be 10 to 20 percent below the price.
Hansen says, "The window when our next chance to sell within a profit, who knows when that will be. We may have to sit on this crop to get a spring rally. More than likely that's what's going to happen. I suspect that every bin's going to get filled that hasn't been filled in a while and guys are going to sit on this crop."